LANSING – Some businesses that add jobs to their employment rolls would receive a Single Business Tax credit under a bill passed unanimously Tuesday by the House.
Businesses with gross receipts for a tax year of $10 million or less could claim a credit equal to 1 percent of the compensation paid to employees who performed new jobs for the tax year beginning in 2005.
With the bill (SB 1274), lawmakers are hoping to lessen what many say is a disincentive against hiring that is built into the Single Business Tax, which bases its tax in part on the costs of salaries.
The Senate Fiscal Agency estimates the bill would reduce state revenues by $3.3 million for the 2004-05 fiscal year and $6.7 million for 2005-06.
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